Agriculturally
Speaking
By RU8SELLC. KING
County Extemion Chairman
The 1964 federal tax legislation requires that tax
payers substantiate the business use of certain listed
property with adequate contemporaneous records.
Passenger automobiles are included as listed
property.
The definition of a passenger automobile includes
any four-wheeled vehicle designed for highway use
and weighing 6,000 pounds or less. Light-duty trucks
may be defined as passenger automobiles.
If a business deduction is to be claimed for any
passenger automobile, the taxpayer is required to
Keep adequate contemporary records. This require
ment became effective January 1,1985.
The "adequate contemporary records" rule can be
satisfied by keeping a log or diary for each vehicle
with the content including the following information:
•Date of use of property.
•Purpose for which vehicle was used.
•Name of user of vehicle.
•Number of miles recorded.
Information for each use of the listed property
should be recorded.
A round trip to purchase farm supplies, or feed cat
tle, can be considered a single use. Therefore, the
mileage for a round trip could be accounted for by
a single entry.
Here are examples of record keeping entries:
January 2, 1985, to anywhere, N. C., purchased
tractor parts, Joe Smith, 22 miles.
January 3,1985, farm use: feeding cattle, 4 miles.
January 4, 1985, to anywhere, N. C., delivered
feeder cattle, John Brown—hired hand, 15 miles; to
anywhere, N. C. purchased feed, Joe Smith, 40 miles.
Taxpayers should have recorded the vehicle
mileage on January 1, 1985. They are required to
keep records on all business use. Then on December
31,1985, they should record the ending mileage of the
vehicle. These figures can then be used to substan
tiate the business mileage.
Adequate contemporaneous records are required
for all passenger autos. This includes vehicles that
are used entirely for business purposes.
For more information, call me at the Warren Coun
ty Agricultural Extension Service.
Miss Gilliam Is Speaker
At Three Point Meeting
By C. WANDA SEWARD
Reporter
Miss Rosiland Gilliam
spoke to the Three Point
Youth Development 4-H
Club at their recent
meeting. Her program
was on Dr. Martin
Luther King, Jr., and all
the good he did for the
black people. Miss
Gilliam also listed some
of the restrictions which
were on black people
before Dr. King helped
them. In closing she left
Lake Gaston
Club Has Meet
By TANYA KIMBLE
Saturday, Jan. 19, the
Lake Gaston 4-H
meeting was called to
order by President
Latashua Logan.
The group is planning
to have a recreation
center located at
Macon's Grave. The
recreation center will
consist of a softball field
and cabins.
Herbert Hawkins was
selected chairman of the
recreation center and we
hope with his support
goals for this project will
soon be achieved.
Selections for the
refreshment and pro
gram committees were
made.
Those on the refresh
ment committee are:
Patricia Hawkins, Eddie
Fitts, and Bobby Carter.
Those on the program
committee are Janice
tyarrison, James
Weaver, Harold
Freeman, and Angie
Carter.
us with a thought which
originated in one of Dr.
King's speeches, "Be all
you can be in life."
Thirteen club
members and seven
adult leaders were pre
sent. Three new
members attending
were: Torina Alston; An
tonio Alston and Nolan
Davis. We welcomed
them to our club.
The meeting was call
ed to order by our new
president, Edward
Seward.
The meeting was clos
ed with the members
repeating the 4-H Motto,
"To Make The Best
Better."
The refreshments
were served by Mrs.
Mary Francis Alston and
Mrs. Gwendolyn Crews.
New Horizon
Club Gathers
The New Horizon 4-H
Club of Jerusalem Bap
tist Church held their
January meeting recent
ly with President
Stephina Jones presid
ing.
The guest speaker was
Warren County Sheriff's
Deputy Thomas Mc
Caffity.
McCaffity showed two
films on drug abuse.
He explained to the
group the dangers of
drug abuse and urged
them to say no if offered
illegal drags.
The club closed with
the motto.
The next meeting will
be Feb. 14.
Only Two Are Present
By MICHELLE
MEADOR
Due to severe weather,
there were only two
members attending the
January 30 meeting of
the Oine Road 4-H Club.
After the meeting was
called to order, a new
name was selected out of
many good names sug
gested. It was the Sad
dlebred 4-H Club.
A dub calendar was
distributed to all
attending. It listed club
activities through
March 31.
Members discussed
4-H camps and pam
phlets were passed out
containing information
about the camps.
The dub talked about
different types of fund
raisers to raise money
for future field trips.
Also, a decision was
made to have a booth at
this year's Warren
County fair.
Tentative plans have
been made to attend the
Northwest District All
Breed 4-H horse sale at
Flintrock Farms on
Feb.3.
For Better Living
Shop Around For Best Financial Deal, Agent Advises
By MARGARET J. WOODS
Associate Home Economics Extension Agent
Any potential housing consumer should shop
around for the best financing deal available. Reading
through the advertisements in the business section
of the local newspaper will help identify what the
banks or savings and loan associations are offering
in the way of mortgage terms. The next step would
be to talk with several and ask the following nine
questions:
1) How much of a home's purchase will the bank
finance? Some lenders will finance 90 to 95 percent
of a primary residence but only 80 to 90 percent of
a second home. This means a 5-10 percent down pay
ment or even 20 percent. Private mortgage insurance
may be required if the lender is financing more than
80 percent of the home's purchase price because the
bank stands to lose more if the borrower is unable
to make payments. In addition to a one-time
premium payment of Vz to 1 percent of the amount
of the mortgage, there will be an annual premium
of 25 percent of the entire loan on a monthly basis
until the mortgage balance has been reduced to 75
to 80 percent of the appraised value of the property.
2) How many points does the loan carry? A point
is 1 percent of the amount of the loan and is payable
at the time of closing. Most lenders charge from 2
to 5 points, which on a $60,000 loan would vary from
$1,200 to $3,000.
3) Is there a limit to how much the interest rate
on an ARM can change? Find out if there is a "cap"
that limits how much the interest rate or monthly
payments can rise from one adjustment period to
another.
4) How high can monthly payments go? This is
a very important question. The loan should have a
lifetime cap. Find out!
5) Could the mortgage principal ever increase?
This may sound impossible, but could happen if the
loan has a monthly payment cap. If interest rates ex
ceed the rate being paid, the difference could be add
ed to the principal balance. This is called negative
amortization and means that with every payment the
mortgage gets bigger—not smaller.
6) What index does the bank use to calculate mort
gage rates? Every bank relies on one or more
interest-rate gauges to determine its gauges, or in
dices, are commonly used, most often Treasury bills,
and the bank's interest rate goes up and down with
the gauge it follows. While it's good to know what in
dex a bank uses, even more important is its markup,
the 1 to 4 percent above the index which covers the
cost to the bank and provides it the profit on the loan.
Even 1 percent can make an impact on monthly
payments. Once again, the best way to compare dif
ferences among ARMs is to look at how much will
be paid yearly—or at each adjustment period
assuming the interest rates may rise steadily.
7) Would the terms of the loan, as explained today,
be the same when the loan application is approved?
Loan applications can take six to eight weeks to pro
cess, during that time, economic conditions or a
bank's funds availability can change. The result: a
borrower may not be able to get the amount of finan
Dr. Carolyn R. Gattis
Chiropractor
211 Orange St.
Henderson, N. C.
Phone: 492-1986
Hours: 12 Noon Til 6 P.M.
cing applied for or the interest rate quoted original
ly. The only safeguard is if the bank puts the date
of the effective terms in a letter to the borrower along
with the application form.
8) Is the loan assumable? Many mortgages are
assumable, which can be an advantage when it
comes to selling a home. If the loan's assumable, the
bank is obligated to continue to finance the house at
the current interest rate if sold to a qualified buyer.
9) What are the closing costs? In addition to points,
there are other expenses which fall due at the sale's
closing and can add up to more than $2,000. These
can include the title transfer taxes, title search (or
attorney's fees), credit report costs, recording fees,
prepaid homeowners insurance premiums and
private mortgages insurance.
Where more
Americans find
a bigger refund
I
H&R BLOCK Wr 1 an ' Promise everyone
tins, but in a reccrtl survey
of customers who got re
Found Patricia Leser 3 out of 4 believe
(hey got bi&>ei refunds
/K 111 ry | than if they did their own
^ j I taxes. 3 out of 4'
What can we find for you?
Louisburq Warrenton
346 S- Bickett Blvd. 134 N Main St,
496-2136 257-2297
Open 9 AM-6 PM Weekdays. 9-5 Saturday
Masli rt ard and V i\a auvpted at most area locations.
Start Your Own
Family Business
Build a Perdue Primary Breeder House
Your whole family can pitch in on the good-pay -
ing, year-round work a Perdue Primary breeder
operation provides. Or you can do the work your
self with a little outside help.
Either way, it's steady Work right at home.
You'll earn a good income and increase the value of
your farm at the same time. It's even easy to get
your own Perdue Primary breeder or pullet busi
ness started.
Perdue needs 8 more Primary breeder houses
and 6 pullet houses now to produce eggs to support
our new primary hatchery soon to be constructed
in Soul City. Mail in the coupon, or call us collect
at (919) 795-4151, or call Tom Traylor, our Perdue
representative in Norlina at (919) 456-2331.
T Id like to know more about starting
I my own Perdue breeder operation.
Name
Address
City State Zip 11
I Ph"*L^- |
Mail to Perdue, P.O. Box 428, Robersonville, NC 27871 J
Give yourself a raise-raisin with Perdue.